Inheritance Tax Planning Church Stretton2021-06-07T14:48:59+00:00

Inheritance Tax Planning in Church Stretton

Are you looking to take charge of your financial planning? Have you heard of Inheritance tax planning before? At LG Embrey Financial Planning we offer inheritance tax planning in Church Stretton. We can provide you with guidance and jargon-free information about inheritance tax planning in Church Stretton. With our advice and planning, you will be able to leave as much inheritance to your loved ones as possible. If your total assets are over the inheritance tax (IHT) threshold, your family may have to pay a bill promptly after your death. But with advance inheritance tax planning and advice you can keep that bill to a minimum.

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Need help with IHT?

Call us today on 01743 382002 for more information about inheritance tax planning in Church Stretton or use the contact form to make an enquiry.

What is Inheritance Tax?

At LG Embrey Financial Planning, we offer advice and clearly explain the services to be provided to you. We will ensure that you will be kept up to date throughout the entire process. But first, we shall explain what Inheritance tax (IHT) is. Inheritance tax is the tax your beneficiaries may have to pay if your estate is above a certain size. You can leave up to £325,000 to your beneficiaries tax-free, this is known as the IHT nil-rate band. Everything above that threshold will be taxed, usually at the rate of 40 per cent. We will walk you through the process and find the best solution for you. It may seem daunting at first, but with our inheritance tax planning in Church Stretton, you can rest assured that your loved ones will receive the maximum inheritance possible.

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Who will pay inheritance tax?

Providing that you already have your will already set up, the named executor will be responsible for arranging the tax payment to HMRC. If you have not yet made a will, the administrator of your estate will do this instead. We will implement the recommendations for you. We are here to help you through the entire process, so feel free to ask any questions. The tax payment is usually made from the funds within the estate or from money raised by selling assets within the estate. After inheritance tax has been paid, the remaining value of the estate is distributed. We will provide you with a bespoke service to ensure you get the best inheritance tax planning in Church Stretton for you and your family.

Will the family home be affected?

The main residence nil-rate band is an extra IHT allowance. Set at £100,000 in April 2017, this tops up your £325,000 if you pass a ‘primary residence’ (i.e. your main or only home) on to your children or grandchildren. By 2020 it will be £175,000, meaning a couple could leave up to £1,000,000 of assets tax-free to their children if this includes the family home.

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Where do I go for inheritance tax planning?

Simply put, you get in contact with LG Embrey Financial Planning. We are dedicated to helping you to plan for your financial future. Inheritance tax planning in Church Stretton is a process we have had plenty of experience in over the years, we look forward to working with you. If you leave your entire estate to your spouse or civil partner, they won’t have to pay inheritance tax. There are also exempt beneficiaries, such as charities, who won’t be taxed on anything you leave to them. There are various ways you can reduce the size of your taxable estate during your lifetime, such as by making gifts, setting up trusts, charitable giving and other forms of planning. All of these options can be discussed with us. We take great pride in providing inheritance tax planning in Church Stretton.

About LG Embrey Financial Planning.

We aim to provide independent financial and wealth management advice for a diverse range of clients, with an emphasis on building long-lasting and strong relationships with my clients. It is my aim to provide an excellent financial plan for their current needs and aiming to get clients to where they want to be in the future.

If you have any questions about inheritance tax planning in Church Stretton or any other of the services I provide, please do not hesitate to contact us today. You can contact us on 01743 382002 or fill in the contact form.

IHT Wealth Planning

Inheritance tax planning FAQs.

Can I Gift My House to My Children to Reduce Inheritance Tax?2021-06-10T13:10:27+00:00

The answer to this isn’t straightforward. In order to avoid the IHT liability, the gift must be made with no strings attached. If the gift has conditions, or you benefit from the home in some way such as continuing to live there, it will be known as a “gift with reservation of benefit” and will remain subject to IHT. There are, however, ways to avoid such a benefit but these are complex and so we would recommend seeking professional advice from us to discuss your particular circumstances.

When Should I Seek Assistance with Inheritance Tax Planning?2021-06-10T13:10:46+00:00

When it comes to inheritance tax planning, the sooner you do it, the better. If you delay making plans for a number of years, your options could potentially be reduced, and costs could be increased. For example, making a gift to a beneficiary could potentially reduce or eliminate your IHT bill. However, you have to survive a minimum of seven years for this to take full effect, otherwise IHT may be payable on the gift.

Act now by getting in touch with our team here in Shrewsbury to discuss Inheritance Tax Planning.

What is the Residence Nil Rate Band?2021-06-10T13:11:12+00:00

The residence nil rate band has been gradually introduced since April 2017. This is added to your existing threshold. The initial allowance was £100,000 in 2017, then it was raised to £125,000 in 2018/19. It will be £150,000 in 2019/20 and the final amount will be £175,000 in 2020/21. This new allowance will only apply if you want to pass your home to a direct descendant like a child or grandchild, therefore not everyone will be able to take advantage of it.

When added to your existing threshold, this could potentially give you an overall allowance of £500,000 if you are single or divorced, or £1 million if you are married or in a civil partnership.

How Can I Reduce Inheritance Tax?2021-06-10T13:11:36+00:00

There are numerous ways that you can reduce or even avoid IHT. Tax legislation constantly changes and evolves, and so up-to-date financial advice is always required to ensure your plans are tailored for your particular circumstances and wishes.

We provide a specialist Inheritance Tax Planning service to help you protect your assets in the case of your death.

Who Pays the Inheritance Tax?2021-06-10T13:11:50+00:00

If there’s a will, it’s usually the executor of the will who arranges to pay the IHT. If there isn’t a will, it’s the administrator of the estate who does this. You can pay IHT from funds within the estate, or from money raised from the sale of the assets.

In actuality, most IHT is paid through the Direct Payment Scheme (DPS). This means, if the person who died had money in a bank or building society account, the person dealing with the estate can ask for all or some of the IHT due to be paid directly from the account through the DPS.

The liability will typically need to be paid within six months from the date of your death, and failure to settle the bill will result in interest being charged by HM Revenue & Customs. Once the liability has been paid, your executors can apply for a Grant of Probate which will allow them to legally access the rest of your assets.

Once the tax and debts are paid, the executor or administrator can distribute what remains of the estate.

How Much Inheritance Tax will I Have to Pay?2021-06-10T13:12:15+00:00

Inheritance tax is calculated at 40% of the value of the possessions over and above the IHT thresholds. The rate may be reduced to 36% if 10% or more of the estate that is above the threshold is left to charity. So if the value of your estate is above the NRB, then the part of your estate above the threshold might be liable for tax at the rate of 40%.

As an example, if your estate is worth £525,000 and your IHT threshold is £325,000, the tax charged will be on £200,000 (£525,000 – £325,000). The tax would be £80,000 (40% of £200,000).

What is the Inheritance Tax Threshold?2021-06-10T13:12:28+00:00

Currently the IHT threshold is £325,000 for an individual and £650,000 for a married couple or civil partners. If a person is widowed, it might still be £650,000 depending on how much of the allowance was used when their partner passed away.

What is Inheritance Tax?2021-06-10T13:12:38+00:00

Inheritance Tax (IHT) is a tax payable on the value of a person’s estate when they die. It is paid if the value of their possessions (their estate) exceeds their IHT thresholds (also known as nil rate bands) and exemptions. If your estate is large enough to incur Inheritance Tax, you can reduce or even avoid it in a number of ways with the help of a financial adviser.

If you are married or have a civil partner, then you can leave your entire estate to your spouse or partner free of inheritance tax. But if you want to leave some or all of your estate to family and friends, then it may be liable for inheritance tax.

Arrange a personal consultation.

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